HSH Nordbank Sues Barclays Over 'Empty' MBS

Law360, New York (April 3, 2012, 5:00 PM EDT) -- Barclays Bank PLC and its affiliates sold $46 million of mortgage-backed securities to HSH Nordbank AG that weren't actually backed by the mortgages Barclays promised, the German bank alleged in a New York state lawsuit filed Monday.

Barclays said that the securitizations were made up of certificates and that the underlying mortgage had been assigned to trusts, the bank allegedly said in its offering documents.

But in fact, more than 99 percent of the mortgages were improperly assigned or never assigned — that is, they were...
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